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Lithuanian economy dreads deflation

Aug 26, 1999
Peter J. Mladineo

VILNIUS - As the summer winds down in Lithuania, prices have entered their fourth month of decline, and some economists are questioning if it is just a seasonal trend or worse. But mention the word deflation and you are likely elicit a variety of responses, from frivolous exuberance to dread. Last month saw a figure of minus 0.5 percent, the lowest price dip so far this year. Also, merchants having trouble moving merchandise are continuing to slash prices.But is deflation something to fear and, ...

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